HP Inc. posts huge PC-driven revenue beat, raises FY26 EPS outlook

The quarter cleared expectations by a wide revenue margin. HP generated $15.7 billion of revenue versus published expectations of roughly $14.4 billion, while non-GAAP diluted EPS reached $0.83 versus consensus near $0.69. Revenue growth was concentrated in Personal Systems, which rose 18% year over year to $11.8 billion, led by a 22% increase in commercial PCs.

The EPS beat is real but less clean than the headline suggests. Both GAAP and non-GAAP EPS benefited by $0.11 per share from tariff refunds, meaning adjusted EPS excluding that benefit was approximately $0.72—only modestly above the prior guidance ceiling of $0.71. The quarter also faced an easier comparison because last year included unusually large tax and litigation benefits.

PC momentum more than offset deterioration in printing. Commercial Personal Systems revenue jumped 22% and consumer PC revenue rose 10%, but total PC units fell 16%, implying pricing and mix—not broad unit expansion—drove much of the growth. Printing revenue declined 2%, supplies fell 3%, and total printing hardware units dropped 7%. 〔0〕

Underlying profitability remains the main reservation. Non-GAAP operating margin fell to 6.5% from 7.1% despite the revenue acceleration, with Personal Systems margin dropping to 4.6% from 5.4%. That indicates cost and component pressures are still absorbing part of the PC upside. Cash generation was better, with $1.7 billion of operating cash flow and $1.6 billion of free cash flow.

The raised full-year outlook confirms the upside was not treated as purely one-off. HP lifted fiscal 2026 non-GAAP EPS guidance to $3.19–$3.29, including an estimated $0.19 tariff-refund benefit, and raised free-cash-flow expectations. Netting out the refund, the guide still implies improvement from the prior outlook, although the adjustment makes the quality of the increase less robust than the headline range suggests.